Chamber seeks removal of duty for fibre imports

The Indian Chamber of Commerce and Industry, Coimbatore, has appealed to the Union Government to remove the counter vailing duty and special additional duty for viscose and polyester imports.In a pre-budget memorandum submitted to the Centre, the chamber president Mahendra Ramdas has said that the Customs Duty on all capital goods, spares and accessories for the textile industry should be uniform at five per cent. Benefits under the Technology Upgradation Fund (TUF) scheme for textile units should be available to the units every quarter within a month from the completion of the quarter.

The Central Sales Tax purchases should be eligible for Value Added Tax benefits to reduce the cost for the manufacturers. Maharashtra, Gujarat and Andhra Pradesh levied VAT when cotton was removed from the State to another. However, there was no tax for depot transfer. The tax should not be levied for cotton transfer from the producing State to others.The Minimum Alternate Tax on the book profit should be 10 per cent and not 15 per cent.

In the new Direct Tax Code Bill, the proposal to charge two per cent tax on gross assets would affect companies with large asset base and do not have sufficient profits. The depreciation for plant and machinery for micro and small units should be increased to 30 per cent as these units should stay competitive in the global market. A scheme similar to the TUF for the textile industry should be introduced for the engineering sector.

The Centre should extend subsidies for roof top solar (photo voltaic) installations, solar energy use in processing units, energy management software and thermal infrared scanners used to detect energy waste, he said.

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